Bozeman, Montana – Federal authorities have recovered nearly $850,000 for victims of a fraud scheme involving a former manager of a Bozeman dairy cooperative, bringing his remaining restitution obligation from a case dating back nearly two decades to an end.
The U.S. Attorney’s Office recently recovered $848,858.72 connected to Jeffrey Nicholas McCown, who was convicted in 2011 following an investigation by the IRS and FBI. The underlying fraud took place at Country Classic Dairy in Bozeman between 2007 and 2008.
McCown worked as a manager for the dairy cooperative. He was convicted of wire fraud and conspiracy to commit wire fraud alongside three other employees. They included Michael Ernest Monforton, who served as the dairy’s CEO, Jeanette Sabrina McCown, the bookkeeper, and Scott Michael McCown, the shop manager.
Jeffrey McCown received a three-year federal prison sentence followed by three years of supervised release. The court also ordered McCown and Monforton to pay $1.16 million in restitution.
Federal officials discover assets years after conviction
The latest recovery came after the Financial Litigation Unit within the U.S. Attorney’s Office learned that McCown was entitled to receive a substantial payment resulting from the sale of a business and real property.
The unit moved to garnish those funds and ultimately recovered $848,858.72. The money was used to satisfy McCown’s remaining restitution obligation in full and provide additional recovery for victims of the fraud.
“Today’s recovery marks a significant step toward restoring losses suffered by the victims of this fraud. This case demonstrates that even many years after a financial crime is committed, the pursuit of justice and restitution continues,” said Todd Wacaser, Acting Special Agent in Charge, IRS-CI Denver Field Office. “Those who misuse organizational funds should know that IRS Criminal Investigation remains committed to following the money, identifying assets, and working with our law enforcement partners to hold offenders accountable and recover funds whenever possible.”
The fraudulent activity began in October 2007, when Country Classic Dairy operated as a producer-owned cooperative based in Bozeman. The cooperative later merged with Seattle-based Darigold in 2010.
According to federal authorities, McCown and the three other employees began using money belonging to the cooperative for personal purchases and reimbursements.
McCown used a cooperative credit card to buy and maintain a variety of personal property. Those assets included vehicles, trailers, boats, firearms and an RV. Authorities also found that he obtained cash advances using cooperative credit cards and accounts.
To hide what was happening, McCown recorded personal purchases and other transactions as legitimate business expenses, allowing the activity to appear connected to the dairy’s operations.
The FBI said crimes involving people who misuse trusted positions can have effects beyond the immediate financial losses.
“Fraud does more than cause financial loss, it erodes trust,” said Special Agent in Charge Justin Gerken of the FBI Billings Field Office. “When individuals exploit positions of trust for personal gain, they harm not only the organization, but also the employees, customers, and communities that depend on it. The FBI remains committed to investigating these crimes and holding those responsible accountable.”
The recovery demonstrates how federal authorities can continue pursuing court-ordered restitution long after a criminal conviction and prison sentence. By identifying McCown’s expected payout and garnishing the money, officials were able to recover nearly $850,000 and satisfy his remaining restitution obligation years after the original fraud occurred.
